NCR gets ATM company for $1.7B

Cardtronics will be converted to a privately held firm

NCR Corp. landed the Houston ATM company Cardtronics for about $1.7 billion, outbidding two New York investment firms, the companies said Monday.

The transaction, expected to close in mid-2021, will convert Cardtronics to a privately held company. Edward H. West, Cardtronics CEO, said the sale was in best interest of the shareholders.

“This compelling transaction … will deliver superior value to our shareholders,” West said in a statement. “This is a testament to the strength and value of Cardtronics, our talented team and customer base, and the complementary nature of our two businesses.”

NCR, headquartered in Atlanta, provides technology for the financial, retail and hotel industries. Cardtronics operates one of largest non-bank ATM networks in the world.

Cardtronics in December agreed to be sold to the New York investment firms Apollo Global Management and Hudson Executive Capital for $35 a share, some price analysts said this undervalued the company. NCR made an unsolicited bid for $39 a year on Dec. 31.

“Anything could happen at this late stage,” said Sam Ditzion, CEO of Tremont Capital Group, a Boston research and consulting firm, “but this likely seems to be a done deal.”

NCR paid Cardtronics’ $32.6 million breakup fee to end the deal with Apollo and Hudson. NCR executives said Cardtronics fits well with its business and expertise in payment platforms.

The company expects the merger to yield between $100 million and $120 million by cutting operational costs. NCR plans to pay for the transaction with cash on hand and financing from Bank of America.